Housing Pension 'Preferred Type' with Higher Benefits Expands... Eligibility Increased from Under 150 Million to Under 200 Million KRW in Residential Areas

Support for Appraisal Fees Also Applied from September 1 for New Applicants

[Asia Economy Yeongnam Reporting Headquarters, Reporter Kim Yong-woo] The Housing Finance Corporation (HF) will expand the eligibility for the preferential housing pension by raising the market price limit of eligible houses from under 150 million KRW to under 200 million KRW starting September 1.

Accordingly, from next month, if the market price of a house is under 200 million KRW, subscribing to the preferential housing pension will provide up to 21% more monthly payments for life compared to the general housing pension.

Before the system improvement, only the general housing pension was available for houses priced between 150 million KRW and under 200 million KRW, but after the improvement, subscription to the preferential housing pension will be possible, allowing recipients to receive higher monthly payments.

The housing pension is a financial product guaranteed by the government that allows seniors aged 55 and older to pledge their owned house as collateral and receive stable monthly retirement funds for life.

The preferential type is a product that pays up to 21% more monthly payments if at least one spouse is a basic pension recipient and the couple owns one house with a market price under 150 million KRW (expanded to under 200 million KRW from September 1).

Additionally, HF Corporation decided to support appraisal fees only when there is no housing market price for applications for the preferential housing pension submitted after September 1.

Accordingly, a homeowner with a 160 million KRW house can save approximately 360,000 KRW (including actual expenses) in appraisal fees.

President Choi Jun-woo said, “Considering the recent rise in housing prices that reduced the eligibility for the preferential housing pension, we have adjusted the housing price limit to reflect reality,” and added, “We will continue to improve the system to provide stronger support for the elderly’s retirement in the future.”